Revealing Big Picture Charts Of Commodities & 3 Broad Market Indices
by Chris Kimble, Kimble Charting Solutions
Commodities could bounce huge off the neckline, says Joe Friday!
The Thompson Reuters Commodity Index created a multi-year head & shoulders topping pattern with the right shoulder being completed in the summer of 2014. Since the right shoulder took place, commodities have tanked in the past 18-months.
The large decline now has commodities testing the neckline, “as support” at (1) above.
Joe Friday, Just The Facts- Regardless of whether you own commodities at this time, the world wants/needs this commodities index, to bounce off support at (1) above!
Why is this level so darn important??? If the neckline gets taken out, the measure move suggests the index could work its way to the 200 level. I humbly feel this is a time that we want/need commodities to hold at the neckline. If they don’t, it could be a tad bit frustrating from a global macro situation, if commodities complete the measured move!
Bullish reversal patterns take place in three broad indices!
The 3-pack below looks at three very broad indices in the states. Each chart is based upon monthly prices.
Each index remains inside of 5-year rising channels and each has declined in price over the past year.
The declines in price, has taken each to rising channel support, testing to see if the 5-year bull trend in stocks, is to remain in play.
These charts are based upon monthly prices and over the past two months, each index has created bullish reversal patterns (bullish wicks) at 5-year rising channel support, which reflects that the long-term bull pattern remains in play.
From a 30,000 foot view, it is very important, that support remains in play and doesn’t break. If support would give way, it would send a message to stocks that we haven’t seen in the past 5-years!
Falling resistance, due to the lower highs and lower lows over the past year, is the next huge test, to see if the 5-year trends will remain in play!!!
Courtesy of philstockworld.com